Reckitt Benckiser Group (RBGLY) AI Stock Analysis

• Market Cap: $53.32B
• Dividend Yield: 3.4%
• Average Volume (3M): 3.23K
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.07
• Revenue Growth: 0.29%
• EPS Growth: -14.19%
• Country: US
• Employees: 37,900
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.38
• Shares Outstanding: 3,366,034,200
• 10 Day Avg. Volume: 9,706
• 30 Day Avg. Volume: 3,235
• PEG Ratio: -2.16
• Price to Book (P/B): 5.02
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 15.17
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 4.15
• Enterprise Value/Gross Profit: 6.81
• Enterprise Value/Ebitda: 20.89
• 1Y Price Target: $15.05
• Price Target Upside: -4.26% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.93
• Revenue Forecast (FY): $18.88B

• Rating: 78 Outperform
• Price Target: $17.00 ▲(8.14% Upside)

Reckitt Benckiser Group's overall stock score is driven by strong financial performance and positive technical indicators. The optimistic earnings call further supports the score, despite high valuation concerns. Challenges in specific markets and product lines are noted but are outweighed by the company's robust growth in emerging markets and cost-saving initiatives.

Positive Factors

Emerging Markets Growth

Strong growth in emerging markets indicates Reckitt's ability to expand its market presence and capitalize on new consumer bases, supporting long-term revenue growth.

Cost Management

Effective cost management through the Fuel for Growth program enhances operating margins, ensuring sustained profitability and competitive advantage.

Shareholder Returns

The share buyback program reflects strong cash generation and management's commitment to returning value to shareholders, boosting investor confidence.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in maintaining sales growth, which could impact long-term profitability and market position if not addressed.

North America Market Challenges

Declining revenue in North America highlights potential market saturation or competitive pressures, posing risks to future growth in a key market.

Product Line Weakness

Weakness in specific product lines like Essential Home indicates potential issues with product demand or competition, affecting overall revenue stability.

Reckitt Benckiser Group Business Overview & Revenue Model

Company Description

Reckitt Benckiser Group (RBGLY) is a global consumer goods company based in the UK, specializing in health, hygiene, and home products. Established in 1823, the company operates across several key sectors, including health, hygiene, and nutrition. Its core product lines include well-known brands such as Dettol, Lysol, Air Wick, Durex, and Nurofen, which cater to everyday consumer needs across the globe.

How the Company Makes Money

Reckitt Benckiser generates revenue primarily through the sale of its branded consumer products in health, hygiene, and nutrition sectors. The company employs a multi-channel distribution strategy, selling products through retailers, e-commerce platforms, and direct-to-consumer channels. Key revenue streams include over-the-counter health products, household cleaning agents, and personal care items. Additionally, RBGLY benefits from strong brand loyalty and recognition, allowing it to maintain premium pricing on many of its products. Strategic partnerships with retailers and distributors enhance product availability and market penetration. The company also invests in innovation and product development to stay competitive, adapting to consumer trends and preferences, which further drives sales and revenue growth.

Reckitt Benckiser Group Financial Statement Overview

Summary

Reckitt Benckiser Group shows solid financial health with strong profitability and cash flow metrics, despite a recent dip in revenue. The balance sheet remains stable, with manageable leverage and good return on equity. While the company is well-positioned in terms of profitability and cash generation, future growth may be challenged by the declining revenue trend.

Income Statement

Over the past year, Reckitt Benckiser Group experienced a decline in total revenue from $14.61 billion to $14.17 billion, indicating a revenue contraction of approximately 2.68%. Despite this, their gross profit margin remains robust at 60.66%, underscoring effective cost management. The EBIT margin is healthy at 17.11%, although the net profit margin decreased slightly to 10.06%. Overall, the company maintains strong profitability, but the recent downturn in revenue growth is a concern.

Balance Sheet

The balance sheet shows stability with a debt-to-equity ratio of 1.29, indicating a moderate level of leverage. The equity ratio stands at 26.47%, reflecting a solid capital structure. Return on equity is calculated at 21.28%, demonstrating good returns for shareholders. However, the company's total assets have decreased, which may impact future growth potential.

Cash Flow

Reckitt Benckiser Group's cash flow statement highlights robust free cash flow to net income ratio of 1.56, emphasizing strong cash generation relative to net income. Operating cash flow slightly increased to $2.682 billion, reinforcing the company's ability to generate cash from operations. Nevertheless, the free cash flow growth rate is modest at 1.37%, suggesting limited cash flow expansion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.98B	14.17B	14.61B	14.45B	13.23B	13.99B
Gross Profit	8.51B	8.60B	8.76B	8.36B	7.69B	8.44B
EBITDA	2.78B	2.96B	3.19B	3.65B	3.02B	3.48B
Net Income	1.24B	1.43B	1.64B	2.33B	-32.00M	1.19B
Balance Sheet
Total Assets	24.62B	25.30B	27.14B	28.74B	26.95B	31.29B
Cash, Cash Equivalents and Short-Term Investments	963.00M	760.00M	1.39B	1.16B	1.26B	1.65B
Total Debt	9.29B	8.66B	8.54B	8.88B	9.56B	10.56B
Total Liabilities	18.27B	18.58B	18.67B	19.26B	19.49B	22.13B
Stockholders Equity	6.31B	6.70B	8.45B	9.44B	7.40B	9.12B
Cash Flow
Free Cash Flow	2.02B	2.22B	2.19B	1.95B	1.32B	3.12B
Operating Cash Flow	2.51B	2.68B	2.64B	2.40B	1.70B	3.52B
Investing Cash Flow	-480.00M	-396.00M	-466.00M	-139.00M	239.00M	-512.00M
Financing Cash Flow	-2.02B	-2.71B	-1.81B	-2.38B	-2.29B	-2.86B

Reckitt Benckiser Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBGLY, the sentiment is Positive. The current price of 15.72 is above the 20-day moving average (MA) of 15.44, above the 50-day MA of 15.39, and above the 200-day MA of 14.04, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 90.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBGLY.

Reckitt Benckiser Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBGLY	78 Outperform	$53.32B	33.76	17.21%	3.40%	0.29%	-14.19%
PG	74 Outperform	$344.53B	21.52	31.90%	2.86%	1.23%	17.97%
UL	73 Outperform	$148.56B	24.90	28.36%	3.41%	-0.30%	-14.60%
CHD	72 Outperform	$20.31B	26.63	18.59%	1.41%	1.45%	42.04%
CL	63 Neutral	$64.44B	22.40	450.35%	2.61%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	62 Neutral	$36.02B	18.38	136.87%	4.75%	-10.04%	-23.41%

Reckitt Benckiser Group Corporate Events

Reckitt Benckiser Reports Strong Half-Year Results

Reckitt Benckiser Group Plc is a global consumer goods company specializing in health, hygiene, and nutrition products. It operates in the fast-moving consumer goods sector, known for its strong brand portfolio including Dettol, Lysol, and Durex.

Reckitt Benckiser’s Earnings Call Highlights Growth and Challenges

Reckitt Benckiser Group Plc-ADR’s latest earnings call revealed a generally positive sentiment, marked by strong performance in Core Reckitt and Emerging Markets. The company has successfully gained market share and enhanced operational efficiency. However, challenges persist in the North American market and the Self Care category. Despite these hurdles, Reckitt’s strategic initiatives and financial metrics indicate a positive trajectory for the company.